Transformation Capital Launches $500 Million Digital Health Fund to Support Entrepreneurs Transforming Healthcare
Transformation Capital Partners, L.P. (“Transformation Capital”) has announced the launch of its oversubscribed growth equity fund, Transformation Capital Fund II, L.P. (“TCF II”), which has $500 million in limited partner capital commitments and is focused on investing in commercial-stage digital health companies that serve stakeholders across the healthcare system.
TCF II will invest growth equity to support entrepreneurs in building game-changing digital health and technology-enabled service businesses that are improving the healthcare system. Transformation Capital sees enormous opportunity to attack waste and drive efficiencies, leverage patient-specific information to deliver data-driven, tailored care with better outcomes, and give the consumer what they need to select and pay for healthcare more proactively.
“Digital health innovation was already growing at an unprecedented rate over the past five years, but the pandemic has reshaped the culture and the policy and has greatly accelerated user adoption of technology by all healthcare stakeholders. Our deep and focused investment experience and unparalleled network in healthcare means that we are in a great position to find the next transformational companies and help them grow,” said Todd Cozzens, Managing Partner.
Dr. Jared Kesselheim, Managing Partner, said: “We have built a team of digital health experts – that’s all we do. Our team has founded and built companies, been clinicians and invested in digital health for our entire careers. We strive to be the firm of choice for founders, CEOs and investors who seek to take their digital health companies to the next stage of growth and scale.”
Transformation Capital manages over $800 million across the investment funds it advises and was founded on the premise that healthcare requires a highly-focused investment approach combining deep industry expertise and vast connections. The investment team, led by Todd Cozzens, Dr. Jared Kesselheim and Mike Dixon, has more than 50 years of combined experience in founding and operating digital health companies like Picis, practicing as frontline clinicians at Massachusetts General Hospital, and investing with Sequoia Capital and Bain Capital Ventures. Julie Murchinson, former CEO of Health Evolution, joined the firm recently as a Partner to help extend the firm’s healthcare network and provide additional operational and go-to-market services for portfolio companies.
“Stakeholders in healthcare, whether they be biopharma companies, payers, providers, employers or consumers are adopting digital health solutions at a faster pace than ever,” said Mike Dixon, Managing Partner. “There is so much disruption ahead. If you’re a digital health entrepreneur or founder with strong commercial traction and need to scale, we are an ideal partner.”
The team’s collective healthcare experience includes Health Catalyst (NASDAQ: HCAT), MedExpress (acquired by United), Clover Health (NASDAQ listing pending), Liazon (acquired by Towers Watson), ZirMed (now Waystar), Ability Network (acquired by Inovalon), and Apixio (acquired by Centene).
Snowbridge Advisors LLC acted as exclusive financial advisor and Snowbridge Securities LLC acted as exclusive placement agent in the United States and Canada. ISPartners Investment Solutions AG acted as placement agent in Europe.